When implementing a core banking system, it is crucial to restructure the organization. This involves redefining workflows to improve operational efficiency. The transition requires streamlining existing processes to align with the capabilities of the new system, ensuring that departments work cohesively and without redundancy. By restructuring roles, responsibilities, and workflows, banks can optimize resource allocation, reduce response times, and improve customer service. This restructuring not only facilitates the adoption of the core banking system but also positions the organization for sustainable growth and adaptability in a competitive market.
Understanding Resistance: Tackling Unseen Roadblocks
Resistance typically arises from fear of the unknown or disruptions to established practices. For example, during a restructuring initiative at the Trade Bank of Iraq (TBI), we introduced a new inter-branch reconciliation system. The changes were met with strong resistance, particularly from a branch that handled a high volume of trade business.
The senior manager, worried about how the changes would impact her team’s expertise and processes, expressed her concerns. Instead of dismissing her fears, I engaged with her to understand her perspective and provided detailed explanations of the new system. By directly addressing her concerns and assuring her that the changes would not harm her business or customer relationships, I was able to gain her support.
Communicating Transparently: The Impact of Clear Messaging
Clear communication is critical during restructuring to prevent confusion and the spread of rumours. At TBI, when we implemented the core banking system, initial pushback came from the operations and internal audit departments due to a lack of clear understanding and apprehensions.
To remedy this, we organized a series of meetings where we clearly outlined the vision for the new system, its benefits, and its impact on each department. By involving staff from operations and internal audits in our communication efforts, we ensured that our messaging was clear and consistent. This transparent approach demystified the changes and built trust among employees.
Involving Stakeholders Early: Building Alliances
One of the most effective strategies to overcome resistance to organizational restructuring is to involve stakeholders early in the process. This not only provides valuable insights but also fosters a sense of ownership and commitment.
At TBI, we formed a steering committee with representatives from various departments to help shape the restructuring plan for our core banking system. By involving stakeholders from the beginning, we were able to create a sense of ownership: Committee members felt more invested in the restructuring process, making them more likely to support the changes.
A key example of this approach’s effectiveness was the involvement of the Head of Internal Audit. Initially sceptical, he became a vocal supporter after seeing how his input shaped the final plan, helping to rally others behind the restructuring efforts.
Addressing Concerns Directly: Offering Support
When implementing organizational changes, it’s essential to address concerns head-on and provide the necessary support to stakeholders. Resistance often arises from fears of the unknown or worries about the impact of the changes. Proactively addressing these concerns fosters a more positive and supportive environment.
We provided comprehensive training on the new system, ensuring that each operational staff member fully understood its features and benefits. We established a dedicated helpdesk to assist branches with any questions or issues. Additionally, we prepared operational manuals in Arabic, complete with screenshots for each function, and sent teams to each branch to train key employees. These employees then trained others, ensuring branch operations were not disrupted. These proactive steps demonstrated our commitment to supporting the branches through the transition and alleviated fears. As a result, the branches became more open to the new system and played a key role in its successful implementation.
Demonstrating Quick Wins: The Power of Early Success
Showing early successes can build momentum and encourage broader support for the changes. When implementing a new customer service strategy, we focused on quick wins to gain buy-in.
After launching the core banking system, we quickly achieved impressive results, including reduced response times and increased customer satisfaction. Sharing these successes in internal meetings and discussions helped build confidence in the new strategy, mitigating scepticism and encouraging support for implementing other modules.
Providing Clear Benefits: Highlighting Positive Impacts
Emphasizing the benefits of restructuring is crucial to gaining support. During a digital transformation project, we highlighted how the new technology would enhance efficiency and improve the customer experience.
We created case studies showing how similar changes had benefited other organizations. Functional documents in Arabic, with screenshots, were developed, and the team imparted training to all employees without disrupting regular banking activities. By showcasing these examples, we illustrated the tangible benefits of restructuring and addressed concerns about potential drawbacks. This approach shifted the focus from the challenges of the transition to the long-term advantages it would bring.
Building Trust and Credibility: Leading by Example
Trust is essential when managing resistance to change. During the implementation of a new compliance initiative, scepticism was high, and gaining trust was crucial for success.
I made it a point to be directly involved in the implementation process, addressing issues personally and demonstrating my commitment to the initiative. Leading by example helped build trust and credibility with the team, mitigating resistance and fostering a sense of shared responsibility for the initiative’s success.
Monitoring and Adapting: The Importance of Flexibility
Finally, it’s essential to monitor and adapt your strategy throughout the restructuring process. During a major organizational change, we continuously sought feedback and made adjustments as needed.
We implemented a feedback loop that allowed employees to share their concerns and suggestions throughout the implementation process. This ongoing dialogue helped us make timely adjustments and address issues before they escalated. By being flexible and responsive, we effectively navigated challenges and ensured a smoother transition.
Conclusion
Restructuring often faces resistance, but a smooth transition can be achieved with empathy, clear communication, and a proactive approach. By understanding concerns, involving stakeholders, and showcasing positive outcomes, resistance can be transformed into support. Patience and flexibility are essential in successfully navigating organizational change.
Indrajit Roy Choudhury 